[WSBARP] "Controlling interest" REET rule : separate property land to Trust for H&W

[Eric Nelsen]

Exempt for other reason—it’s a transfer without change in beneficial interest. Before the transfer, client owns 50%; after the transfer, client retains beneficial interest in 50%. WAC 458-61A-211<https://app.leg.wa.gov/WAC/default.aspx?cite=458-61A-211>.

Unless you’re saying it’s client’s separate property currently, and would change to community if put in the trust? If so, maybe do it as a two-step process: client deeds to client & spouse as community property, exempt under -203; then client & spouse deed to their trust, exempt under -211.

Sincerely,

Eric

Eric C. Nelsen
Sayre Law Offices, PLLC
1417 31st Ave South
Seattle WA 98144-3909
206-625-0092
eric at sayrelawoffices.com<mailto:eric at sayrelawoffices.com>

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From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Josh Grant
Sent: Thursday, December 29, 2022 1:56 PM
To: wsbar <wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] "Controlling interest" REET rule : separate property land to Trust for H&W

Client owns an undivided ½ interest in farm parcel. Other ½ interest is owned by an uncle.  Client wants to put her undivided interest in the parcel in a Trust along with other assets like the family home (all community property) in order to avoid probate. Beneficiaries of the existing trust are she and her husband. Client lives out of state and this is the only asset in Washington. I am hoping that because client owns 50% that the controlling interest isn’t being transferred and no REET issue.??
Josh
Joshua F. Grant
[advocates]
P. O. Box 619
Wilbur, WA 99185
509 647 5578
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